The above quote is taken from my “Maxims of Wall Street.” The third edition was just released (see details below).

What’s the best way to survive and prosper when stocks slump? We are now in a full-scale market retreat that began on January 1, 2014. It is not surprising after the massive boom of 2013, when stocks climbed 30% or more.

Steve Forbes said it best, “Everyone is a disciplined, long-term investor… until the market goes down.” Then people panic.

What’s the best strategy — (1) sell your stocks and go to cash? (2) sell stocks short and actually profit as the market retreats? Or (3) dollar-cost-average in stocks that inevitably will go up?

For most investors, the smart answer is (3) to dollar-cost-average, especially in stocks that pay steady and rising dividends.

I have a whole section of great quotes from seasoned investors and money managers about dividend-paying stocks in “Maxims.” Here are just a few words of wisdom:

“Dividends are the critical factor giving the edge to most winning stocks in the long run.”

— Jeremy Siegel, The Wizard of Wall Street, author of “Stocks for the Long Run”

The evidence supports this conclusion. According to Ned Davis Research, companies paying a dividend returned 10.1% compared with just 4.1% for non-dividend companies between 1972 and 2006. What’s more, during periods when the market declined (like now) between 1970 and 2000, dividend stocks outperformed non-dividend-paying stocks by a 1.5% margin every month!

Lowell Miller, author of “The Single Best Investment” and money manager extraordinaire, insists on investing only in dividend rising stocks. He states, “Dividend growth is the true signal of a prospering company.”

Miller’s formula for beating the market is simple but powerful. He calls it “Investing with Peace of Mind.” His formula is:

High Quality + High Yield + Growth of Yield = High Total Return

Doug Casey says it best, “Dividends are an outward sign of inward grace.” I can tell Doug went to a Catholic school.

I like this statement by John D. Rockefeller: “Do you know the only thing that gives me pleasure? It’s seeing my dividends coming in!”

You Blew it!
Obama Denies a Growing Welfare State

“Welfare is actually worth less now than it was 20, 30 years ago — it’s worth less than it was under Ronald Reagan.” — President Barack Obama

In an interview on nationwide TV, President Obama told Bill O’Reilly with a straight face that there’s no welfare crisis in America. He said that welfare costs have already fallen in real terms since Reagan was elected.

Granted, the welfare program AFDC (Aid to Dependent Children) was converted to a block grant in 1996, and has been roughly flat at about $20 billion for the past 15 years.

However, “welfare” more broadly includes food stamps (which have quadrupled since 2000), the two disability programs (SSDI and SSI) which have soared, EITC spending which has soared, and many other items. Between Section 8 housing, Medicaid, disability and food stamps, the U.S. government offers an incredibly generous welfare program — to the point that millions of Americans will be fourth-generation welfare recipients in no time. If you want, you can chart spending with this online tool by clicking the boxes to the left.

The Welfare Reform Act of 1996 was leading to a drop-off in welfare in the United States, until the 2008 financial crisis. We need to bring sanity back to America.

New Third Edition of “Maxims” Hot Off the Press

I just got a call from David Norcom, a successful hedge fund manager in Dallas, Texas. He had ordered 100 copies of my new edition of “Maxims of Wall Street” to give to clients and investors. He told me that he’s gotten dozens of thank you responses from recipients of the book, including several prospective clients. “Friends tell me they love the quotations; the book makes an excellent reference guide that they can pick up at any time and learn from some pithy proverb or advice.” (By the way, Norcom will be joining us at our Global Summit in the Bahamas.)

Good news! The second edition has sold out — more than 20,000 are in print now — and I’ve gone back to press with an updated new 3rd edition. It includes more than a dozen new sayings by Ron Baron, Peter Lynch, John Neff, Ken Fisher and Burt Malkiel. Every page is packed with the wisdom of ages, such as J. Paul Getty’s advice, “Bank on the trends and don’t worry about the tremors.” That’s what we are trying to do at Forecasts & Strategies.

“Maxims” makes a perfect gift for students, friends, your favorite broker and business colleagues. I’m offering a half-price deal. Buy the first copy for $20 and all additional copies are only $10. Plus, I pay the U.S. postage. Also: If you order an entire box of 32 books, you pay only $300 postpaid. (For orders sent outside of the United States, add $10 per book for shipping and handling.)

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen publishes 5 different investment newsletter advisories, including the award-winning Forecasts & Strategies, which has beaten the market over the last 15 years.

Product Details

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays. Bryan's four newsletter and trading services include:

Product Details

Nicholas Vardy

A Stanford and Harvard Law graduate, Nicholas Vardy scours over 40 different global markets every day to uncover new profit opportunities for subscribers. His 3 advisories and trading services include:

Product Details

Bob Carlson

In Bob's monthly newsletter, Retirement Watch, he provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

With decades of Wall Street experience, we publish investment newsletters and website articles offering advice on the best stocks, options, ETFs and mutual funds to invest in for both dividends and capital gains.